Cathie Wood’s Ark Invest and 21Shares Amend Bitcoin Spot ETF Application

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Cathie Wood’s Ark Invest has made a recent amendment to its spot Bitcoin exchange-traded fund (ETF) application in collaboration with 21Shares.

The amended filing, dated November 20, offers insights into the proposed spot Bitcoin ETF, focusing on critical aspects such as custody practices and asset valuation methods.

The updated proposal also addresses previous concerns of the US Securities and Exchange Commission (SEC) about the lack of transparency on how market prices would be developed and standard protection for investors.

Bloomberg’s Bitcoin ETF watcher, James Seyffart, stated that the updated proposal might suggest that the firm negotiations with the US regulatory body are in progress for potential approval.

Update: @ARKInvest just filed another amended prospectus for their spot #bitcoin ETF. Likely means things are likely still moving with SEC conversations. pic.twitter.com/Of2S1pONDc

— James Seyffart (@JSeyff) November 20, 2023

Eric Balchunas, renowned Bitcoin analyst for Bloomberg, also emphasized Wood’s commitment to transparency.

We have a fee! That’s new. $ARKB will charge 80bps. First issuer to disclose this. pic.twitter.com/KCfGYvc356

— Eric Balchunas (@EricBalchunas) November 20, 2023

He posted a screenshot of the Ark Investment Management $ARKB filing, which revealed a sponsor fee of 0.80%, making it the first Bitcoin ETF issuer to disclose fees.

This recent development positions Ark Invest and Swiss crypto manager 21Shares among the leading entities hoping to launch a spot Bitcoin ETF within a set deadline.

The firms’ application is set for its final deadline on January 10 after a series of delays on the final verdict by the SEC.

UPDATE: Wow. The SEC just came out SUPER early and delayed the @ARKInvest / @21Shares#Bitcoin ETF filing. This thing wasn't due for a decision until Nov 11.

Also delaying the @GlobalXETFs application which was due Oct 7. pic.twitter.com/7DiBq1h4Ef

— James Seyffart (@JSeyff) September 26, 2023

With major concerns on transparency now addressed, global crypto communities may witness the first ETF approval in the coming weeks.

Third Time’s the Charm?

The latest Bitcoin ETF filing from ARK and 21Shares is the third amendment since their initial submission for a spot Bitcoin ETF on June 28, 2021.

The great folks over at @21Shares_ just filed for a Bitcoin ETF in partnership with Cathie Wood and @ARKInvest.@hany and the team continue to build one of the most important and valuable asset managers in the industry.

— Pomp (@APompliano) June 28, 2021

The SEC rejected the first request on March 3, 2022, citing non-compliance with its rules of practice and Exchange Act regulations for listing financial products.

A second application was submitted on May 25, 2022, only to face another rejection by the SEC on January 26, 2023.

The SEC has just now once again rejected ARK's and 21Shares spot bitcoin, $BTC ETF listing.

— unusual_whales (@unusual_whales) January 26, 2023

Despite facing rejection twice, the investment companies renewed their request for SEC approval of a Bitcoin ETF on April 25, 2023.

While the SEC has approved Bitcoin Futures ETFs, it has consistently rejected applications for Spot Bitcoin ETFs.

The regulatory body stresses concerns about protecting investors and the public interest, particularly in guarding against potential fraud in the cryptocurrency market.

While progress may seem stunted, Wood’s latest amendment may signal hope of a potential approval before its application deadline.

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